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McEwen Mining Acquires Black Fox Complex in Timmins, Canada for $35 Mln

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McEwen Mining (MUX) said Tuesday it has signed a binding definitive agreement with Primero Mining Corp. for the purchase of its Black Fox Complex in the gold mining region of Timmins, Canada, for a purchase price of $35 million, subject to closing adjustments.

Shares rose 7% in the pre-market session.

The property is located along a 4.5 mile (7 km) section of the Destor-Porcupine Fault, which is host to many gold deposits. It is already well-endowed with the Black Fox Mine, and the Grey Fox and Froome deposits; and has geologic traits that make it prospective to grow the existing deposits and for additional discoveries.

The company said that the acquisition strategically increases its gold production by 50,000 ounces in 2018 and significantly increases its gold resources in the Timmins region. Excess mill and tailings capacity also provide the capability to increase future production.

Closing of the transaction is anticipated in late-September.